Section 35AC eligible project extension: Educational Development Project by Shri Ugam Education Trust approved for a further multi-year period.
The Central Government notifies extension of the eligible project or scheme "Educational Development Project & corpus fund" by Shri Ugam Education Trust for a further three-year period beginning with the 2012-13 financial year, following the National Committee's recommendation under the Income-tax Rules; the notification preserves the previously approved project cost and corpus fund and maintains the project's qualifying status for deductions under section 35AC.

Section 35AC eligible projects extension for Indian Red Cross Society permitted for a further three year period from 2012 13.
Notification under Section 35AC extends eligibility for tax incentive treatment to the Indian Red Cross Society's package of projects-upgrading blood banks, constructing an AYUSH hospital with research centre, establishing medicine banks in 23 districts, building cottages for senior citizens, and constructing an administrative block-for a further three year period commencing with the financial year 2012 13, with no change in the previously approved project cost, following recommendation by the National Committee for Promotion of Social and Economic Welfare.

Eligible project extension under section 35AC: Manavseva Crusade renewed for three additional financial years from 2012-13.
Notification extends recognition of the project "Manavseva Crusade against Childhood Blindness" by Manavseva Lokkalyan Mahasangh as an eligible project under the Explanation to section 35AC for a further three years commencing 2012-13, on the National Committee's recommendation and without change to the approved cost.

Eligible project designation under tax provision extended for vocational institute expansion, preserving approved cost and continued eligibility.
The expansion of the Udaan Institute for vocational studies by Aroh Foundation is extended as an eligible project under the tax provision for a further three-year period beginning 2012-13, following a recommendation by the National Committee for Promotion of Social and Economic Welfare that the project is being executed properly; the extension is granted without alteration to the originally approved project cost.

Tax deduction eligibility extended for a rural development project by Ogawa Society, maintaining continued deductible status for three years.
The Central Government notifies extension of tax-deduction eligibility under section 35AC for the project "DURBAL-UTKARSH" carried out by Ogawa Society, following the National Committee's recommendation under the procedural rules. The project's eligibility is extended for a further three financial years commencing 2012-13, with the approved project cost remaining unchanged.

Section 35AC eligible project extension granted, preserving tax-relief status for Sahara Health & Education Society's welfare scheme.
Notification extends the designation of the scheme "Providing Shelter and Mobile Health Services to the BPL and Tribal Families" by Sahara Health & Education Society as an eligible project for income-tax incentive purposes under section 35AC, based on the National Committee's recommendation and without any change to the previously approved project cost, for a further three-year period commencing with the 2012-13 financial year.

Section 35AC eligible project extension and revised project cost permit continued tax deduction for the hospital expansion.
Notification under Section 35AC extends eligibility for the expansion of Shri Sai Institute of Medical Sciences Hospital and Research Centre, executed by D-CACUS-Education Centre in Manipur, for a further three financial years beginning 2012-13 and substitutes the earlier maximum allowable project cost with a revised higher amount, following the National Committee's recommendation that the project was properly executed.

Project eligibility under section 35AC extended for Residential Ashram School, permitting continued tax-deductible expenditure under the notified scheme.
The Central Government notifies that the "Residential Ashram School for SC/ST students" run by Gohaldiha Jati Upajati Blue Bird, Women Welfare Centre is extended as an eligible project for tax-deduction purposes for a further three-year period commencing with the 2012-13 financial year, following a recommendation of the National Committee and without any change to the previously approved project cost.

Section 35AC eligible project designation extended for rural school, hospital and community development scheme, enabling continued expenditure qualification.
The Central Government re-notifies the Krishnamurti Foundation India project for development of a rural school, rural hospital and community development work as an eligible project for tax-deductible expenditure, following the National Committee's recommendation that the project is being executed properly. The notification extends eligibility for a further three financial years commencing 2012-13, without any change to the previously approved project cost, thereby preserving the project's qualification under the statutory incentive framework.

Tax deduction under section 35AC: Government notifies approved institutions and eligible social welfare projects for deduction eligibility.
Notification under section 35AC lists 34 approved institutions and their eligible projects, records estimated project costs and specifies the maximum amounts allowable as deductions under section 35AC. The approval and deduction applicability are fixed for three financial years commencing with 2012-13 to 2014-15, and the notification records substituted entries where project descriptions or costs were amended by later notifications.

Assessment notice exemption for search-related possession limits notices for six years, subject to poll-hour and abatement exceptions.
Rule 112F exempts the Assessing Officer from issuing notice for assessment or reassessment of the total income for six assessment years preceding the assessment year of a search or requisition where (i) the person is found in possession of money, bullion, jewellery or other valuable articles or (ii) the search/requisition is in an area subject to an election notification or the assets are connected to an ongoing election; exceptions apply for searches after poll hours and where assessments have abated under the provisos to the assessment provisions.

Scientific research approval for social science institutions requires use-restrictions, separate audited accounts and certified donation statements.
Approval is granted to National Law School of India University, Bangalore as an approved organization under clause (iii) of sub section (1) of section 35 for social science research, subject to conditions: sums received must be used for social science research conducted by faculty or enrolled students; separate books of account must be maintained for such sums, audited by a qualified accountant, and the audit report furnished to the jurisdictional tax authority by the return filing due date; and a certified statement of donations received and amounts applied to research must accompany the audit report. Approval may be withdrawn for specified failures to comply.

Investment eligibility expanded to include debt instruments of RBI registered infrastructure finance companies, effective on publication.
The Income-tax (13th Amendment) Rules, 2012 add clause (viii) to Rule 17C of the Income-tax Rules, 1962 to permit investment in debt instruments issued by infrastructure finance companies registered with the Reserve Bank of India; the amendment is made under statutory rulemaking power and comes into force upon publication in the Official Gazette.

Tax residency certification: prescribed Forms 10FA/10FB and verification requirements for treaty relief take effect, defining documentary and AO procedures.
Rule 21AB prescribes the form and content of certificates of residence for claiming relief under sections 90 and 90A: foreign governments must verify and provide specified particulars (name, status, nationality/incorporation, tax identification or unique identifier, tax residential status, applicable period and address). Indian residents must apply to the Assessing Officer in Form No. 10FA, who may issue a residence certificate in Form No. 10FB containing name, status, PAN, address, validity period and the AO's identification and seal.

Cost Inflation Index updated for capital gains computation by inserting the financial year 2012-13 entry in the table.
Cost Inflation Index under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 was further amended by inserting a new entry in the table to the existing notification governing indexed cost computation. The inserted entry specifies the Cost Inflation Index for the financial year 2012-13 as 852.

Transfer pricing for development centres: TNMM with cost plus for low risk contract R&D; PSM cautioned due to data issues.
The Committee recommends that low risk captive Development Centres satisfying cumulative FAR criteria be benchmarked by the Transactional Net Margin Method with an appropriate cost plus mark up, while Profit Split Method should be reserved for exceptional cost sharing or integrally linked intangible cases and used with extreme caution due to data and attribution difficulties. It urges updated CBDT guidance on FAR analysis, issuance of circulars to ensure uniform TP administration, and a set of sectoral clarifications: giving effect to deeming of "on site" exports, recognising DTM when connected to software development, privileging SoW over MSA for scope, treating R&D as eligible under export notifications, and preserving tax holidays on slump sales and SEZ relocations subject to fact based tests.

Appointment under statutory power: Vice President of ITAT appointed as President in an officiating capacity.
The Central Government, exercising statutory power under the Income tax Act, appointed the Vice President of the Income Tax Appellate Tribunal as President in an officiating capacity. Shri H.L. Karwa assumed the officiating Presidency commencing in the forenoon of 1 September 2012, and the appointment continues until the post is filled on a regular basis by subsequent selection.

Accountant certificate requirement: prescribed forms and annexure detail evidentiary certifications for non-deduction/non-collection instances.
The amendment inserts rules 31ACB and 37J and prescribes Forms No. 26A and 27BA for accountant certificates under the first provisos to section 201(1) and section 206C(6A). Each form requires the payer/collector to declare payments or receipts made without deduction or collection, enclose an Annexure A where an eligible accountant certifies examination of records and specific particulars (nature, date, statutory head, amounts, tax deducted/collected and return-filing details), confirms inclusion in the payee's/buyer's return, and affirms independence and the truthfulness of the certificate.

Advance Pricing Agreement scheme clarifies eligibility, application, processing, compliance audits and revision mechanisms for transfer pricing.
The Income-tax Rules introduce an Advance Pricing Agreement (APA) Scheme defining eligibility for taxpayers with international transactions, mandating pre-filing consultation and prescribing Forms 3CEC and 3CED for pre-filing and APA applications. The procedure sets a fee schedule, completeness checks with deficiency cure periods, team-led processing including meetings, information calls and site visits, and distinct handling for unilateral, bilateral and multilateral APAs via the competent authority. APAs may specify covered transactions, agreed transfer pricing methodology, arm's length outcomes and critical assumptions, and include mechanisms for annual compliance reporting, compliance audits, revision and cancellation where assumptions change or non-compliance is found.

Mutual administrative assistance in tax matters expands cross-border information exchange, recovery and service mechanisms under a multilateral convention.
The Central Government notifies implementation of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, obliging Parties to provide administrative assistance across covered taxes through exchange of information (on request, automatic and spontaneous), assistance in recovery including measures of conservancy, and service of documents. The Convention prescribes procedural requirements for requests, defines competent authorities and taxes, establishes secrecy and limited use of information, permits specified reservations and territorial declarations, and provides mechanisms for coordination, interpretation, costs allocation and entry into force.